Rieter has entered into a definitive agreement to acquire Barmag from OC Oerlikon for CHF 713 million in upfront equity, a move that will significantly expand Rieter’s capabilities in both natural and manmade fiber production. Headquartered in Winterthur, Switzerland, the combined business will position Rieter as a global leader in fiber-to-yarn solutions.
Barmag, with 2024 sales of CHF 734 million and approximately 2,600 employees, supplies filament spinning systems, texturing machines, BCF systems, staple fiber and nonwoven technologies. It operates under the brands Oerlikon Barmag, Oerlikon Neumag, and Oerlikon Nonwoven, with development centers in Germany and China, and strong market presence in China, India, Türkiye, and the U.S.
With global fiber consumption rising—particularly in manmade fibers—the acquisition aligns with Rieter’s growth strategy. Natural fiber expansion remains limited by environmental constraints, while manmade fibers are expected to drive demand across apparel, home, and technical textile sectors.
The deal builds on Rieter’s previous acquisitions and further diversifies its portfolio, reducing market cyclicality and expanding its footprint in the Asia-Pacific region. Barmag’s expertise will also strengthen Rieter’s digital capabilities and sustainability initiatives.
Thomas Oetterli, CEO of Rieter, stated: “We are proud to welcome the Barmag brands to Rieter. This strategic combination will create a leading force in the textile industry and deliver long-term value to shareholders, customers, and employees.”
Georg Stausberg, CEO of Barmag, added: “Joining Rieter is an ideal outcome. We bring complementary technologies and market knowledge that will benefit our global customer base.”
The transaction values Barmag at CHF 850 million, reflecting an EV/EBITDA multiple of 6.3x (pre-synergies). An earn-out is included, contingent on financial targets through 2028. Rieter expects the acquisition to be earnings-accretive, thanks to Barmag’s higher structural profitability and margin resilience. Financing is secured through a bridge loan, with long-term funding to come from a CHF 400 million rights issue (with tradable subscription rights), a CHF 77 million private placement fully subscribed by Rieter’s top two shareholders, and additional bank financing.
Rieter’s largest shareholder, Peter Spuhler (c. 33%), and second-largest, Martin Haefner (c. 10%), both support the deal and will participate in the rights issue and private placement. PCS Holding AG is expected to maintain its 33% stake post-capital increase.
Following the CHF 477 million equity raise, Rieter plans to rapidly deleverage from an estimated 3x leverage ratio by year-end 2024, supported by strong cash generation from the combined entity. An Extraordinary General Meeting is planned for Q3 or Q4 2025 to approve the capital increase, with final rights issue terms to be announced at that time.
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